Deppon Logistics

Deppon Logistics is a Chinese complex logistics service provider specializing in domestic automotive and air travel.

History

2022: JD.com bought Deppon Logistics for $1.42 billion

In mid-March 2022, Chinese Internet retailer JD.com announced the purchase of Deppon Logistics to strengthen its logistics infrastructure. As part of the deal, JD Logistics will receive a 99.99% stake in Deppon Holdco for a total of about $1.42 billion.

Under the terms of the deal, Deppon Holdco is sold at $2.07 per share. The purchase price was determined taking into account factors including the earnings of Deppon Logistics, the performance of its stock market and similar companies, as well as long-term strategic benefits from the transaction, the companies said in a statement. JD Logistics plans to finance the acquisition with its own funds and third-party funding.

JD.com bought a logistics company for $1.42 billion

JD Chief Executive Officer Liu Qiangdong said that the company is investing heavily in warehouses and logistics infrastructure, as the coronavirus pandemic (COVID-19) has accelerated the transition to e-commerce. Qiangdong added that the essence of logistics itself is to find ways to rationally promote the product along the chain and this process is quite laborious and provides for control of the list of actions from the manufacturer to the final recipient.

According to Bloomberg, the Chinese express delivery and logistics industry for March 2022 is undergoing market consolidation, during which small players began to merge with giant competitors. Deppon Logistics offers comprehensive logistics services, including transportation of goods in a wagon, car and air transportation, and also owns a warehouse management system. By the beginning of 2022, Deppon Logistics had more than 30 thousand maintenance stations throughout China, 143 transshipment centers with an area of ​ ​ more than 1.8 million square meters. m and more than 15 thousand vehicles.^[1]

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